Check Your Understanding-Answers
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If lenders intend to sell mortgages in the secondary market, what must they do?
Use the standardized procedures - called uniform procedures - outlined in the Fannie Mae and Freddie Mac forms.
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List the steps of underwriting.
Qualify the buyer.
Qualify the property.
Decide yes or no to the loan.
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What makes up a mortgage?
A mortgage has two parts: debt and security for the debt.
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What actions does a lender take to sell a mortgage in the secondary market?
The original lender signs the note over to a third party investor or other mortgage company and then executes a document called an assignment of mortgage.
